Weisel Tel Aviv, 72 sqm
Central, renovated after purchase
Original transaction on Primary Market
- Invested so far: 2,827,000 NIS
- Investors so far: 16
- Annual rent Income: 3.0%
- Minimal investment: 50,000 NIS
Slices offered on Secondary Market
|15.5.17||Original price on primary market||2,827,000 NIS|
|TBD||Index price update||TBD|
|TBD||Valuation price update||TBD|
|Slice price||% of property||Implied full property price by seller||-+% from lastest valuation/index price||-+% from original price|
About the property
- Type: Apartment
- Lot: 72 sqm
- Rooms: 2.5 (3 after renovation)
- Baths: 1
- Balconies: 1
- Floor: 2/3
- Built: 0
- Condition: For renovation
- Price/sqm: 35,417
- Central location
- Will be renovated after purchase and have another bedroom
The apartment is located on the second floor of the building, facing south and east. Its ceilings are especially high - 3.1 meters.
The apartment includes a kitchen, restroom, bath, a living room, 1 bedroom, 2 closed balconies and a small entrance hall.
The property was leased to the same tenant for the past 30 years and it is in a bad condition. There are plaster slips and iron bumps in the wet rooms. The renovation of the apartment will be inclusive.
The size of the apartment without the closed balconies is 59 sqm. The size of the balconies is 12.5 sqm. In total the size of the property is 72 sqm. The size of the apartment according to the TABU is 51.76 sqm.
The apartment has no attached common areas, which were attached to other apartments in the building. It is being sold accordingly, with no additional rights to the common building areas.
A tour of the building shows that there are diagonal cracks. On 31/1/2010, an engineering analysis was conducted in connection with the structure and cracks by Mechta-Geotechnica, at the request of the owners in the building. The company recommended a new rigid floor casting, "raft", that will connect the existing elements and columns. The estimate of the costs according to the report by Land Commissioner - Oren Silverman ranges from NIS 600-900 thousand for the entire building, from which NIS 45,000 are to be paid by the owners of this apartment.
After purchase, the property will be completely renovated, and will have 1 living room, 2 bedrooms, an open kitchen, a bath and no balconies. All infrastructure will be replaced and the apartment will look as new. For the renovation budget please look at the investment summary section.
According to a demand review based on similar properties at the neighborhood, expected rent is 7,200 NIS per month.
Monthly rent income of 7,200 NIS would bring an annual rent yield of 3%.
- The property is located at a high demand area at the very center of Tel Aviv. The supply of new properties in Tel Aviv area in the following years is limited and therefore we expect a positive price change is the long term.
A valuation of the property was performed by Oded Landau - certified real estate appraiser, at March 20 2017. Key points from the appraisal report:
Based on an acquisition review of similar properties in the property's neighborhood, as published in the ‘Real Estate Information’ publisher of the tax authorities between the years 2016-2017, the average price for properties was between 42,500-45,000 NIS per square meter.
The space of the apartment according to the permit (graphical measurement) is 59 square meters, and closed balconies of 12.5 sqm. Half of the balconies size was taken for the valuation – a total size of 65.25 sqm.
The condition of the property is not and an investment is needed for repairs and renovation. NIS 181,250 were deducted from the property value accordingly. In addition, relative costs for strengthening the foundations of the building (NIS 45,000) were taken into account in accordance with an engineering opinion and the agreement by the Commissioner.
The apartment value estimation:
44,350 * 65.25 = 2,984,000 – 181,250 – 45,000 = 2,668,000 NIS
The property was valued according to the Market approach.
After negotiation with the seller, the property is purchased below it's appraisal value at 2,550,000 NIS.
|Purchasing price||2,550,000 NIS|
|Renovation costs||205,500 NIS|
|External agent costs||71,500 NIS|
|Total investment||2,827,000 NIS|
Ownerhood services commission of 2% of the total sum of investment + VAT will be paid separately, as well as personal taxes.